One Surprising 'Green Shoot' In U.S. Markets
Candy Matheson | Mar 22, 2020 02:09AM ET
There is one "green shoot" in U.S. markets as of Friday's close.
The following heatmap shows the percentages of stocks within the Sectors and Major U.S. Indices that are currently trading above a variety of moving averages.
The one "green shoot" is the percentage of stocks in the Energy Sector now trading above their 5-day MA...a refreshing change in a constant sea of red for the past weeks. The heatmap shown in my post of February 29 was completely devoid of any green.
You can quickly see which of the Sectors and Major Indices are the weakest and strongest of the weak by which ones have the least/most stocks above their 200-day MA.
With regard to the Major Indices, the NASDAQ 100 is the strongest, while the Dow Composite, Dow Industrials, Dow Transports and Dow Utilities are the weakest.
The following monthly chart of the SPX shows the RSI at a 10-year low of 35.77, while price nearly hit February 2017 lows.
This downward plunge shows no signs of slowing any time soon.
The following percentages-lost graphs taken from February 19 show the destruction that has occurred in just one month in the Major Indices and Major Sectors.
Get The News You Want
The Small-Cap and Transport Indices and the Energy and Financial Sectors have suffered the most.
Markets are like gardens.
What shall we harvest from our gardens...sustenance or weeds? As we sow, so shall we reap. Are we tenders or raiders? Do we prepare the soil and provide nutrients and water for the seeds, or do we sow despair and destruction? If we love our gardens, they will love us back.
So, too, if markets continue to be raided, they will become barren beyond recovery.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.